Coterra Energy Inc at Scotia Howard Weil Energy Conference (Virtual) Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Holly Meredith Barrett Stewart - Scotia Howard Weil, Research Division - Analyst : So maybe, Tom, we'll start with the integration. Tell us how it's going, challenges. Any new color that you can provide on just the synergies and the merger and how it's all developing.

Question: Holly Meredith Barrett Stewart - Scotia Howard Weil, Research Division - Analyst : Great. Yes. Maybe we'll talk a little bit high level just on the energy markets today. You've seen a number of commodity cycles. And over your career, what's maybe been the most exciting time in energy?

Question: Holly Meredith Barrett Stewart - Scotia Howard Weil, Research Division - Analyst : And does that mean that you or your team are spending more time in Washington or in front of the political folks to push the agenda?

Question: Holly Meredith Barrett Stewart - Scotia Howard Weil, Research Division - Analyst : Yes. Good to hear. Maybe let's move to some of the operational items ahead. I guess maybe start with the Permian. You got a lot of improvements going on, operational, right now. This 8-well pad, you've -- over 8-well pad that you've talked about. What are some of the most, maybe, exciting things going on operationally right now in the Permian?

Question: Holly Meredith Barrett Stewart - Scotia Howard Weil, Research Division - Analyst : Is this something you can transfer to the Marcellus or the Anadarko Basin?

Question: Holly Meredith Barrett Stewart - Scotia Howard Weil, Research Division - Analyst : Okay. I mean that might be a great cost savings over time, particularly in the Permian. Maybe just on the Marcellus, as you think about the longevity, right, the portfolio, how do you think about the production trends over time? You're incorporating some Upper Marcellus into the program this year. Can you just talk about the plans and, maybe, how you see that not just over '22 but, maybe, over sort of a 5-year period?

Question: Holly Meredith Barrett Stewart - Scotia Howard Weil, Research Division - Analyst : Yes. Yes. So as you think about sort of that capital allocation, then over the whole portfolio over, maybe, a 3- to 5-year window, do you see it similar to how you're allocating capital today? Or how do you think that trends?

Question: Holly Meredith Barrett Stewart - Scotia Howard Weil, Research Division - Analyst : High-class problem.

Question: Holly Meredith Barrett Stewart - Scotia Howard Weil, Research Division - Analyst : So incremental dollar today and no judgment on putting more capital into the drill bit. And I know everyone doesn't want to see high volumes. But incremental dollar today, where do you think that dollar would go in those 3 portfolios? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 23, 2022 / 3:45PM, CTRA.N - Coterra Energy Inc at Scotia Howard Weil Energy Conference (Virtual)

Question: Holly Meredith Barrett Stewart - Scotia Howard Weil, Research Division - Analyst : Okay. You talked -- you mentioned the constraints, whether it's the Marcellus or the Permian. Maybe your view on just how you see the Permian unfolding over. And the rig count is going up, I think, a few years ago when flaring was, maybe, a little bit more acceptable in the Permian. So just some thoughts on how you see those constraints sort of unfolding?

Question: Holly Meredith Barrett Stewart - Scotia Howard Weil, Research Division - Analyst : Yes. And I remember something similar in the Marcellus. I don't remember if it was '15 or '16, but there was this, "We're not going to be able to get the gas out." And somehow, like you said, the gas just flowed. Now we took a significant haircut on price with that, but there were still...

Question: Holly Meredith Barrett Stewart - Scotia Howard Weil, Research Division - Analyst : Yes. Yes. Yes. No, that's good insight. I know we only have a few more minutes. So I should probably mention the return of capital program. I know you guys are -- you've got the plan in place for variable, regular and the share buyback, share buyback being sort of the newest addition to that return of capital program. Maybe just talk about how you're thinking about the buyback today. I don't know if there are parameters, but how do you think about just the valuation and buying back those shares?

Question: Holly Meredith Barrett Stewart - Scotia Howard Weil, Research Division - Analyst : Okay. And maybe I'll squeeze in one more that I know has been important to investors is just the hedging strategy as prices have moved up here pretty significantly. Just maybe give the audience some high-level thoughts on how you feel about the hedge book today and where you, maybe, like to see it in the future.

Question: Holly Meredith Barrett Stewart - Scotia Howard Weil, Research Division - Analyst : Okay. Okay. No, that's helpful. we'll stop there and head to breakout. And anybody has any questions, please come next door. Thank you.